Feds shut down 7 banks on Friday
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By MARCY GORDON, AP Business Writer - 1 hr 35 mins ago
WASHINGTON - Regulators on Friday shut down two big California banks, as well as banks in Alabama, Florida, Georgia, Michigan and Illinois, bringing to 140 the number of U.S. banks brought down this year by the weak economy and mounting loan defaults.
Regulators shuttered First Federal Bank of California, based in Santa Monica, with $6.1 billion in assets and $4.5 billion in deposits, as was as Imperial Capital Bank of La Jolla, Calif., with about $4 billion in assets and $2.8 billion in deposits.
Also closing their doors Friday were Atlanta-based RockBridge Commercial Bank, with $294 million in assets and $291.7 million in deposits; and New South Federal Savings Bank, based in Irondale, Ala., with $1.5 billion in assets and $1.2 billion in deposits.
Citizens State Bank of New Baltimore, Mich., with $168.6 million in assets and $157.1 million in deposits, was shut down, along with Peoples First Community Bank of Panama City, Fla., with $1.8 billion in assets and $1.7 billion in deposits.
Regulators also closed Independent Bankers' Bank, based in Springfield, Ill. - a sort of wholesale bank that provided services to 450 client banks in four states - with $585.5 million in assets and $511.5 million in deposits.
The failure of Citizens State Bank will cost $76.6 million; the failure of New South Federal Savings Bank is expected to cost $212.3 million; that of Peoples First Community Bank $556.7 million; Independent Bankers' Bank, $68.4 million; and RockBridge Commercial Bank, $124.2 million.
RockBridge Commercial had about $2.1 million in deposits that exceeded the $250,000 per-account insured limit, an estimate likely to change after more information is gathered from customers, the agency said.
Depositors with funds that exceed the insured limits become essentially creditors of the failed bank. They will eventually recover some of their money, but the amount can range from 40 cents on the dollar up to the full amount. Recovery can take months.
Bank Failures
WASHINGTON - Regulators on Friday shut down two big California banks, as well as banks in Alabama, Florida, Georgia, Michigan and Illinois, bringing to 140 the number of U.S. banks brought down this year by the weak economy and mounting loan defaults.
Regulators shuttered First Federal Bank of California, based in Santa Monica, with $6.1 billion in assets and $4.5 billion in deposits, as was as Imperial Capital Bank of La Jolla, Calif., with about $4 billion in assets and $2.8 billion in deposits.
Also closing their doors Friday were Atlanta-based RockBridge Commercial Bank, with $294 million in assets and $291.7 million in deposits; and New South Federal Savings Bank, based in Irondale, Ala., with $1.5 billion in assets and $1.2 billion in deposits.
Citizens State Bank of New Baltimore, Mich., with $168.6 million in assets and $157.1 million in deposits, was shut down, along with Peoples First Community Bank of Panama City, Fla., with $1.8 billion in assets and $1.7 billion in deposits.
Regulators also closed Independent Bankers' Bank, based in Springfield, Ill. - a sort of wholesale bank that provided services to 450 client banks in four states - with $585.5 million in assets and $511.5 million in deposits.
The failure of Citizens State Bank will cost $76.6 million; the failure of New South Federal Savings Bank is expected to cost $212.3 million; that of Peoples First Community Bank $556.7 million; Independent Bankers' Bank, $68.4 million; and RockBridge Commercial Bank, $124.2 million.
RockBridge Commercial had about $2.1 million in deposits that exceeded the $250,000 per-account insured limit, an estimate likely to change after more information is gathered from customers, the agency said.
Depositors with funds that exceed the insured limits become essentially creditors of the failed bank. They will eventually recover some of their money, but the amount can range from 40 cents on the dollar up to the full amount. Recovery can take months.
Bank Failures
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--Severian the Lame
--Severian the Lame
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Comments
<< <i>How long before the FDIC runs out of money ???? Or has it already ??? >>
The Fed can just print more.
<< <i>How long before the FDIC runs out of money ???? Or has it already ???
I posted an article about that very topic just a few days ago. Because I kind of suspected this was going to be happening with greater frequency--at least in the short run.
Ticking away the days until my CDs mature on 01-04-10...
--Severian the Lame
Count up to 140 from 124 last I looked in November.
I see the FDIC could find no one to buy these banks.
Where & when will this end?
<< <i>How long before the FDIC runs out of money ???? Or has it already ???
I would say never since they have an unlimited line of credit with the treasury. So it is up to Geithner to say no mas, you think he's do that?
Or as VikingDude posted.
Knowledge is the enemy of fear
<< <i>"Depositors with funds that exceed the insured limits become essentially creditors of the failed bank. They will eventually recover some of their money, but the amount can range from 40 cents on the dollar up to the full amount. Recovery can take months."
Count up to 140 from 124 last I looked in November.
I see the FDIC could find no one to buy these banks.
Where & when will this end? >>
In the 30's 25% of all banks failed. Most were very small, as are most of the recent failure. We may lose 1000 banks but will still have 7500 remaining. Most countries only have a few dozen. The system in the US is much more diversified than in other countries.
BTW---Dont forget most of China's banks were insolvent just a few years ago. They survived so will we. And China's banks will probably fail again in the next 5 years. I think the Chinese Govt will be VERY HAPPY they have a ton of DOLLARS to recapitalize them.
Knowledge is the enemy of fear
Pffffft!
The FDIC is already upside down to the tune $8.2 billion and has tapped the Treasury for an $80 billion line of credit (It's a secret so don't tell anyone).
Rumor is that there are 2035 banks/thrifts/credit unions in imminent danger and not the 552 names leaked out.
FYI, this is what I do for a living...I've been tracking this stuff for 30 years.
Cash for clunkers & $8,000 tax credits for home buyers is not GROWTH!
Talking heads thinks J6P are idiots!
Buy GOLD nuff said! Peace, Tim
The only US car maker that DID NOT take BO handout.
<< <i>How are we going to get growth with NO JOBS?
Cash for clunkers & $8,000 tax credits for home buyers is not GROWTH!
Talking heads thinks J6P are idiots!
Buy GOLD nuff said! Peace, Tim >>
We're not gonna get growth. And without growth we're not gonna get inflation. You may want to argue the 70's, but back then the manufacturing sector was still humming along at 80% of capacity---for reference, 85% is almost unheard of--while today we are at 70%. There is a tremendous amount of slack in this and the worlds' economies.
Knowledge is the enemy of fear
<< <i>
<< <i>How are we going to get growth with NO JOBS?
Cash for clunkers & $8,000 tax credits for home buyers is not GROWTH!
Talking heads thinks J6P are idiots!
Buy GOLD nuff said! Peace, Tim >>
We're not gonna get growth. And without growth we're not gonna get inflation. You may want to argue the 70's, but back then the manufacturing sector was still humming along at 80% of capacity---for reference, 85% is almost unheard of--while today we are at 70%. There is a tremendous amount of slack in this and the worlds' economies. >>
Maybe. However since hyperinflation is a currency event and not necessarily an economic event you could still get that. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......